Internship Report on NBP 1

8/3/2019 Internship Report on NBP 1

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Table of contents

Executive summary 04

Mission statement 05

Vision 07

Senior Management 09

Overseas Branches 12

Domestic Branches 13

NBP loan 15

Services 17

Investments 20

Deposit products 23

Exchange rates 25

SWOT analysis 27

Performance analysis 30

Comparative analysis 36

Bank charges 38

Work done by Internee 61

Problems faced by Branch 65

Bibliography 68

1. Executive Summary


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This report is based on internship in National Bank of Pakistan branch name. It is afamous and reputed bank of Pakistan. National Bank of Pakistan maintains first positionin banking sector in Pakistan. This report is based on the activities which are performed

in this bank. This report contains marketing analysis, competitive analysis, SWOTanalysis, bank tariffs and exchange rates of National Bank of Pakistan. There are alsostated the activities which I performed during my internship in the branch. In this reportalso discuss the industry analysis of banking system in Pakistan. There are alsomentioned the way of investment, rates of investment, all types of financing and loansfacilities the National Bank of Pakistan provides. The problems in this branch are alsodiscussed. This report also intimates about the daily reserves which are required by thebranch to meet the need of its daily transactions.


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2.1. Mission Statement

To be recognized in the market place by Institutionalizing a merit & performance culture,Creating a powerful & distinctive brand identity, Achieving top-tier financialperformance, and Adopting & living out our core values.


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2.2. Core Values

2.2.1. We aim to be an organization that is founded on

Growth through creation of sustainable relationships with our customers.

Prudence to guide our business conduct.

A national presence with a history of contribution to our communities.

2.2.2. We shall work to

Meet expectations through Market-based solutions and products.

Reward entrepreneurial efforts.

Create value for all stakeholders.

2.2.3. We aim to be peopling who

Care about relationships.

Lead through the strength of our commitment and willingness to excel.

Practice integrity, honesty and hard work. We believe that these aremeasures of true success.

2.2.4. We have confidence that tomorrow we will be

Leaders in our industry.

An organization maintaining the trust of stakeholders.

An innovative, creative and dynamic institution responding to thechanging needs of the internal and external environment


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2.3. Vision

To be the pre-eminent financial institution in Pakistan and achieve market recognitionboth in the quality and delivery of service as well as the range of product offering

2.4. Senior management

Masood Karim Shaikh SEVP & Group Chief, Corporate & Investment Banking Group

Shahid Anwar Khan SEVP & Group Chief, Commercial & Retail Banking Group

Dr. Asif A. Brohi SEVP & Group Chief, Operations Group

Muhammad Sardar Khawaja SEVP & Group Chief, Audit & Inspection Group


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S. M. Rafique SEVP & Secretary Board of Directors

Imam Bakhsh Baloch SEVP & Group Chief, Compliance Group

Ziaullah Khan SEVP & Group Chief, Special Assets Management Group

Amim Akhtar EVP & PSO to the President

Javed Mehmood EVP & Group Chief, Risk Management Group

Muhammad Nusrat Vohra EVP & Group Chief, Treasury Management Group

Nadeem A. Dogar EVP & Group Chief, Information Technology Group

Dr. Mirza Abrar Baig EVP & Group Chief, Human Resources Management &Administration Group

Mrs. Khurshid Maqsood Ali EVP & Divisional Head Employee Benefits,Disbursements & Trustee Division

Tahir Yaqoob EVP & Group Chief, overseas Coordination & Management Group

Mrs. Uzma Bashir Group Chief, Organization Development & Training Group

Syed Farhan Ahmed Financial Controller & Divisional Head Financial Control Division

2.5. Corporate and financial reporting framework(Code of Corporate Governance)

The board is fully aware of its responsibilities established by the Code of CorporateGovernance issued by the Securities & Exchange Commission of Pakistan (SECP). Theyare pleased to give the following declarations/statements to comply with the requirementsof the Code.

1. The financial statements (Balance sheet, Profit and Loss Account, CashFlow Statement, Statement of Changes in Equity and notes forming partthereof), prepared by the management of the bank give the informationrequired by the Companies Ordinance, 1984 in the manner so required andrespectively give a true and fair view of the state of the bank's affairs as atDecember 31, 2002 and of the results of its operations, changes in equityand its cash flows for the year then ended.

2. Proper books of accounts have been maintained.


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3. Appropriate accounting policies have been consistently applied in thepreparation of the financial statements and accounting estimates are basedon the reasonable and prudent judgment.

4. Approved Accounting Standards have been followed in preparation ofthe financial statements and there is no departure from the said standards.

5. The system of internal control is sound in design and has beeneffectively implemented and monitored throughout the year. The Board isresponsible for establishing and maintaining the system of internal controlin the bank and for its ongoing monitoring. However, such a system isdesigned to manage rather than eliminate the risk of failure to achieveobjectives, and provide reasonable but not absolute assurance againstmaterial misstatements or loss.

The process used by the Board to review the efficiency and effectiveness of the system ofinternal control includes, the following:

The Board has formed an audit committee comprising of three nonexecutive directors. The audit committee has written terms of reference inthe form of a charter, which has been approved by the Board of Directors.The committee is responsible for the oversight of the internal auditfunction and reviews its approach and methodology from time to time. Italso receives and reviews the internal and external audit reports relating tothe internal control, accounts and related matters. The committee on a

continuous basis reviews the material control weaknesses and areas ofconcern and actions to be taken by the executive management to addressthese issues.

Internal audit department of the bank conducts the audit of all branches,regions and groups at head office level on ongoing basis to evaluate theefficiency and effectiveness of internal control system and proper followup of irregularities and control weaknesses is carried out.

The Board receives confirmations/representations from all group andregional heads on annual basis confirming effectiveness of the internal

control system established and maintained by them within their function.

The principal features of the bank's control framework include:

The bank has clearly defined organizational structure which supportsclear lines of communications and reporting relationships.

There exists a properly defined financial and administrative power ofvarious committees and key management personnel, which supportsdelegation of authority and accountability.


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The bank has effective budgeting system in place. Annual budget of thebank is approved by the Board and monthly comparisons of actual resultswith the budget are prepared and reviewed by the senior management.

The bank has a comprehensive framework of written policies and procedures on all majorareas of operations such as Credit, Treasury Operations, Finance, Internal audit andCompliance approved by the Board.

There are no significant doubts about the bank's ability to continue as agoing concern.

There has been no material! Departure from the best practices of thecorporate governance as detailed in the listing regulations.

Key operating and financial data is available in the annual report.

The number of board meetings held during the year were 14 and attendedby the directors as follows:

Syed Ali Raza 14

Dr. Waqar Masood Khan 10

Kamran Y. Mirza 8

A. Razzak Tabba 12

Rizwan A. Kehar 12

Qazi Faez Issa 10

Sheikh Humayun Sayeed 12

Book value of investments of Employees' Pension Fund as at December31, 2002 (un-audited) is Rs. 6,317.705 million.

The pattern of shareholding as required by the code is as follows:

Associated companies, undertakings and related parties Total No. of

shares held

Taurus Securities Limited 2,015

National Bank of Pakistan Trustee Department -NIT 1,009,842

Investment Corporation of Pakistan 1,519,095


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16 Overseas Branches

4 Representative Offices

1 Subsidiary

1 Joint Venture

29 Regional Offices

1,189 Branches

130 Online Branches

4 Subsidiaries

2.6. Overseas Branches

2.6.1. America and Europe Region

USA

Canada

Germany

France

2.6.2. Far East Region

Hong Kong

Japan

South Korea

China

2.6.3. Middle East, Africa & South Asia Region

Bahrain

Egypt


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Bangladesh

EPZ

2.6.4. Central Asian Republics

Afghanistan

Turkmenistan

Kyrgyz Republic

Kazakhstan

Uzbekistan

Azerbaijan

2.7. Domestic Branches

2.7.1.Sind

Dadu/ Sanghar

Hyderabad

Jacobabad/ Shikarpur

Karachi

Larkana

Mirpurkhas/ Badin

Nawabshah/ N' Feroze

Sukkur/ Khairpur

Tharparkar

2.7.2. Punjab

Bahawalpur

D.G. Khan/ RYKhan


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Faisalabad

Gujranwala

Sialkot/ Narowal

Islamabad

Jhang

Jhelum/ Gujrat/ Chakwal

Lahore

Multan/ Baha'nagar

Murree/ Attock/ Gilgit

Rawalpindi

Sahiwal

Sargodha/ Sheikhupura

2.7.3. NWFP

Abbottabad/ Mansehra

Bannu/ D.I. Khan

Kohat / Mingora

Mardan

Peshawar

2.7.4. Baluchistan

All Branches

2.7.5. Azad Kashmir

Muzaffarabad

Mirpur


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2.8. NBP Student Loan Scheme

Pursuant to the announcement made by the Federal Finance Minister in his 2001-2002budget speech, a STUDENTS LOAN SCHEME (SLS) for Education was launched bythe Government of Pakistan in collaboration with major commercial banks of Pakistan(NBP, HBL, UBL, MCB and ABL). Under the Scheme, financial assistance is providedby way of Interest Free Loans to the meritorious students who have financial constraintsfor pursuing their studies in Scientific, Technical and Professional education withinPakistan.

The Scheme is being administered by a high powered committee comprising DeputyGovernor, State Bank of Pakistan, Presidents of the commercial banks and DeputySecretary, Ministry of Finance, Government of Pakistan.

The objective of the Students Loan Scheme is to provide financial assistance to themeritorious students of insufficient means who have obtained 70% marks in the lastpublic examination and are unable to pursue their studies within Pakistan due to financialdifficulties.

Loans facility is available to those students who are nationals of Pakistan includingNorthern Areas, Federally Administered Tribal Areas and Azad Jammu and Kashmir andof age not exceeding 20 years for graduation, 30 years for post-graduation and 35 yearsfor PhD at the time of admission.

The maximum period of repayment of loan is 10-Years from the date of disbursementof first installment .The borrower shall repay the loan in monthly installment after sixmonths from the date of first employment or one year from the date of completion ofstudies, which ever is earlier


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Loan is granted only to those students who have been admitted to the approved undernoted Affiliated Colleges /Universities.

Under the Scheme, loans are available in the following subjects.

Engineering

Electronics

Oil Gas & Petro-Chemical Technology

Agriculture

Medicine

Physics

Chemistry

Biology, Molecular Biology & Genetics

Mathematics

Other Natural Sciences

DAWA and Islamic Jurisprudence (LL.B/LL.M Sharia)

Computer Science/Information System andTechnology including hardware.

Economics, Statistics and Econometrics

Business Management Sciences

Commerce

The facility under this Scheme is restricted to the studies in the above-mentionedsubjects only or such other subjects as may be approved by the Apex Committee fromtime to time. The amount of loans under the Scheme covers the cost of fee, books and boarding forthe entire period of study. Schedule Fee and boarding expenses excluding meal charges is disbursed directly to theUniversity/College. The amount of procurement of textbooks is disbursed directly to the student.


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The students desirous of availing loan under the Scheme may apply on prescribed Formfor financial assistance subject to he or she has got admission on merit through normalprocedure in the Universities/ Colleges afore-mentioned.

Application Forms are available from the designated branches. Applicants are required to submit/send their applications duly completed in all respect,to the designated branches indicated against Universities/ Colleges.

Those students who have already availed this facility last year need not to apply.

3. SERVICES

3.1.

DEMAND DRAFTS

If you are looking for a safe, speedy and reliable way to transfer money, you can nowpurchase NBPs Demand Drafts at very reasonable rates. Any person whether an accountholder of the bank or not, can purchase a Demand Draft from a bank branch.

3.2. SWIFT SYSTEM

The SWIFT system (Society for Worldwide Inter bank Financial Telecommunication)has been introduced for speedy services in the area of home remittances. The system hasbuilt-in features of computerized test keys, which eliminates the manual application oftests that often cause delay in the payment of home remittances. The SWIFT Center isoperational at National Bank of Pakistan with a universal access number NBP-APKKA. All NBP overseas branches and overseas correspondents (over 450) aredrawing remittances through SWIFT.

Using the NBP network of branches, you can safely and speedily transfer money for yourbusiness and personal needs.

3.3. LETTERS OF CREDIT

NBP is committed to offering its business customers the widest range of options in thearea of money transfer. If you are a commercial enterprise then their Letter of Creditservice is just what you are looking for. With competitive rates, security, and ease oftransaction, NBP Letters of Credit are the best way to do your business transactions.


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3.4. TRAVELER'S CHEQUES

3.4.1. Negotiability:

Pak Rupees Travelers Cheques are a negotiable instrument

3.4.2. Validity:

There is no restriction on the period of validity

3.4.3. Availability:

At 700 branches of NBP all over the country

3.4.4. Encashment:

At all 400 branches of NBP

3.4.5. Limitation:

No limit on purchase

3.4.6. Safety:

NBP Travelers Cheques are the safest way to carry our money

3.5. PAY ORDER

NBP provides another reason to transfer customers money using their facilities. Theirpay orders are a secure and easy way to move customers money from one place toanother. And, as usual, their charges for this service are extremely competitive.

3.5.1. Issuance of Pay order

1. for NBP Account Holder

Rs. 50/- (Flat)

2. for NBP Non-Account Holder

Rs. 100/- (Flat)

Rs. 25/- (Flat) from student for payment of fee favoring educational institution


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3.5.2. Issuance of duplicate Pay order

1. for NBP Account Holder

Rs. 100/- (Flat)

2. for NBP Non-Account Holder

Rs. 150/- (Flat)

3.6. MAIL TRANSFERS

Move your money safely and quickly using NBP Mail Transfer service. And they alsooffer the most competitive rates in the market.

3.7. FOREIGN REMITTANCES

To facilitate its customers in the area of Home Remittances, National Bank of Pakistanhas taken a number of measures to:

Increase home remittances through the banking system

Meet the SBP directives/instructions for timely and prompt delivery ofremittances to the beneficiaries

3.7.1. New Features:

The existing system of home remittances has been revised/significantly improved andwell-trained field functionaries are posted to provide efficient and reliable homeremittance services to nonresident Pakistanis at 15 overseas branches of the Bank besidesPakistan International Bank (UK) Ltd., and Bank Al-Jazira, Saudi Arabia.

Zero Tariffs: NBP is providing home remittance services without anycharges.

Strict monitoring of the system is done to ensure the highest possiblesecurity.

Special courier services are hired for expeditious delivery of homeremittances to the beneficiaries.

3.8. SHORT TERM INVESTMENTS


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NBP now offers excellent rates of profit on all its short term investmentaccounts. Whether you are looking to invest for 3 months or 1 year, NBPs rates of profitare extremely attractive, along with the security and service only NBP can provide.

3.8.1. National Income Daily Account (NIDA)

The scheme was launched in December 1995 to attract corporate customers. It is acurrent account scheme and is part of the profit and loss system of accounts in operationthroughout the country.

3.8.2. Effective 23rd December 2004National Income Daily Account (NIDA)

Slab Rate

Rs. 2 Million & above but below Rs. 25 Million 1.00 %

Rs.25 Million & above but below Rs .50 Million 1.10 %

Rs.50 Million & above but below Rs.100 Million 1.30 %

Rs.100 Million & above but below Rs. 250 Million 1.50 %





Rs.5000 Million & above 2.75 %

3.9. EQUITY INVESTMENTS

NBP has accelerated its activities in the stock market to improve its economic base andrestore investor confidence. The bank is now regarded as the most active and dominantplayer in the development of the stock market.

3.9.1. NBP is involved in the following:

Investment into the capital market

Introduction of capital market accounts (under process)


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NBPs involvement in capital markets is expected to increase its earnings, which wouldresult in better returns offered to account holders.

3.10. COMMERCIAL FINANCE

Let them help make your dreams become a reality

Their dedicated team of professionals truly understands the needs of professionals,agriculturists, large and small business and other segments of the economy. They are thecustomers best resource in making NBPs products and services work for them.

3.11. TRADE FINANCE OTHER BUSINESS LOANS

3.11.1. AGRICULTURAL FINANCE

3.11.2. CORPORATE FINANCE

3.11.1. AGRICULTURAL FINANCE

NBP provides Agricultural Finance to solidify faith, commitment and pride of farmerswho produce some of the best agricultural products in the World.

Agricultural Finance Services:

I Feed the World program, a new product, is introduced by NBP with the aim to helpfarmers maximize the per acre production with minimum of required input. Select farmswill be made role models for other farms and farmers to follow, thus helping farmersacross Pakistan to increase production.

Agricultural Credit:

The agricultural financing strategy of NBP is aimed at three main objectives:-

Providing reliable infrastructure for agricultural customers

Help farmers utilize funds efficiently to further develop and achievebetter production

Provide farmers an integrated package of credit with supplies of essentialinputs, technical knowledge, and supervision of farming.

Agricultural Credit (Medium Term):


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Production and development

Watercourse improvement

Wells

Farm power

Development loans for tea plantation

Fencing

Solar energy

Equipment for sprinklers

Farm Credit:

NBP also provides the following subsidized with ranges of 3 months to 1 year on arenewal basis.

Operating loans

Land improvement loans

Equipment loans for purchase of tractors, farm implements or any otherequipment

Livestock loans for the purchase, care, and feeding of livestock

Production Loans:

Production loans are meant for basic inputs of the farm and are short term innature. Seeds, fertilizers, sprayers, etc are all covered under this scheme.

3.11.2. CORPORATE FINANCE

Working Capital and Short Term Loans:

NBP specializes in providing Project Finance Export Refinance to exporters Pre-shipment and Post-shipment financing to exporters Running finance Cash Finance Small Finance Discounting & Bills Purchased Export Bills Purchased / Pre-shipment/ Post Shipment Agricultural Production Loans


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Medium term loans and Capital Expenditure Financing:

NBP provides financing for its clients capital expenditure and other long-terminvestment needs. By sharing the risk associated with such long-term investments, NBPexpedites clients attempt to upgrade and expand their operation thereby making possiblethe fulfillment of their clients vision. This type of long term financing proves the banksbelief in its client's capabilities, and its commitment to the country.

Loan Structuring and Syndication:

National Banks leadership in loan syndicating stems from ability to forge strongrelationships not only with borrowers but also with bank investors. Because they

understand their syndicate partners asset criteria, they help borrowers meet substantialfinancing needs by enabling them to reach the banks most interested in lending to theirparticular industry, geographic location and structure through syndicated debtofferings. Their syndication capabilities are complemented by their own capital strengthand by industry teams, who bring specialized knowledge to the structure of a transaction.

Cash Management Services:

With National Banks Cash Management Services (in process of being set up), thecustomers sales collection will be channeled through vast network of NBP branchedspread across the country. This will enable the customer to manage their companys total

financial position right from your desktop computer. They will also be able to takeadvantage of NBP outstanding range of payment, ejection, liquidity and investmentservices. In fact, with NBP, youll be provided everything, which takes to manage yourcash flow more accurately.

3.12. INTERNATIONAL BANKING

National Bank of Pakistan is at the forefront of international banking in Pakistan which isproven by the fact that NBP has its branches in all of the major financial capitals of theworld. Additionally, NBP have recently set up the Financial Institution Wing, which isplaced under the Risk Management Group. The role of the Financial Institution Wing is:-

To effectively manage NBPs exposure to foreign and domesticcorrespondence

Manage the monetary aspect of NBPs relationship with thecorrespondents to support trade, treasury and other key business areas,thereby contributing to the banks profitability

Generation of incremental trade-finance business and revenues


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3.13.NBP offers:

The lowest rates on exports and other international banking products

Access to different local commercial banks in international banking

3.14. EXCHANGE RATES

Rate Sheet

Treasury Management Group

September 1, 2006

Country Selling Buying sight203/2006

U.S.A 59.85 59.65 59.53 Rates for Currency Notes & TCs

U.K 110.18 109.82 109.55 Selling Buying

EURO 74.76 74.51 74.41 U.S.A 60.45 58.94

CANADA 50.22 50.06 49.92 SAUDI ARABIA 16.12 15.71

SWITZERLAND 48.45 48.29 48.16 U.K 111.29 108.46

AUSTRALIA 45.87 45.72 45.60 JAPAN 0.5528 0.5386

SWEDEN 8.04 8.01 7.99 EURO 75.51 73.67

JAPAN 0.5474 0.5455 0.5441

NORWAY 9.54 9.51 9.49

SINGAPORE 35.73 35.61 35.52 Libor for Calculating Interest on Special USD Bonds

DENMARK 10.03 9.99 9.97 Libor Value

SAUDI ARABIA 15.96 15.91 15.86 6 Moths USD 3.9963 06-Sep-05

HONGKONG 7.70 7.68 7.66 Interest Rates on Old FCY Deposits

CHINA 7.41 7.39 7.37 For 3 Months & Over but Less then 6Months

KUWAIT 204.97 204.28 203.74


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MALAYSIA 15.89 15.84 15.80 USD 0.1000

NEWZEALAND 42.42 42.27 42.16 GBP 0.1000

QATAR 16.45 16.39 16.35 JPY 0.0000

U.A.E 16.30 16.24 16.20

KR. WON 0.0584 0.0582 0.0581

THAILAND 1.459 1.454 1.450

Conversion rates for Frozen FC Deposits, DBC/FCBC, Special USD Bond

USD GBP EUR JPY

59.7163 110.3677 74.9917 0.5484

Bill Buying Rates per Unit of Currency

30 Days 60 Days 90 Days 120 Days 150 Days 180 Days

USD L/C 59.41 59.16 58.91 58.66 58.40 58.14

GBP L/C 109.24 108.71 108.18 107.66 107.14 106.63

EUR L/C 74.29 74.08 73.87 73.66 73.45 73.25


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3.15. SWOT Analysis

3.15.1. Strengths

Western union facility:

National Bank of Pakistan is only one bank which has the facility of Western union. Inthis particular scheme money is transfer in Pakistan from abroad. This is the fastest wayto money transfer. You can receive the money from bank to see the name and passwordof particular client.

ATM finder:


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There is also strength of NBP that they are found the ATM. They now provide thisfacility to the customers.

Governments bank:

In commercial banking system NBP is only the government bank. They make theirpolicies according to the governments rules and regulations. It enjoys its position in themarket of banking system in Pakistan. Government of Pakistan also facilitating theNational Bank of Pakistan.

Customer satisfaction:

Because of governments bank, it is enjoying the customers satisfaction. Customers feelssecure their money in NBP.

Online banking:

There is also strength of NBP that 130 branches are online. It helps the speedy servicesgiving to the customers. There is also help in checking the balances and daily transactionsjust at one key press.

Employees loyalty:

Employees are very much loyal to NBP. Employees turnover is very low in NBP. Veryfew employees are leaving the jobs in NBP. So it is very big strength that your employees

are loyal to your organization.

Wide area of services:

They provide the wide area of services. They offer no. Of services relating to the bankingsystem like, pension to retired government employees, traffic challans, fees received ofAIOU, farms of AIOU, utilities bills, deposits, sales tax , withholding tax, property tax,and various loan schemes.

3.15.2. Weakness

Lack of communication between employees:

During the internship in NBP I found the problem of lack of communication between theemployees and management. They have not very much understanding with each otherand not share the work of each other.

Punishment is not very strong for employees:


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Punishment threat is not very strong for employees. Some employees are not veryprofessional in their field but top management not takes the action against suchemployees.

Public dealing is not very effective:

Public respect is not very effective in NBP. Employees are not taking care of thecustomers, especially in pension and bills department.

Staff shortage:

There is also weak point for NBP that staff is very short and more staff is required tomeet the needs of the branch work. They help from internees.

Lack of respect of seniors:

They are not a healthy sign for NBP that respect of seniors is not up to the manners.

Juniors try to avoid the seniors and no take the help from them.

3.15.3. Opportunities

Growing banking system:

Nowadays banking system is growing quickly so NBP have opportunities to improve thestandard and get the more share in the market.

NBP have government back:

In growing era there is a chance for NBP to improve itself and increase the shares in themarket because it is most trustable due to governments bank.

Increase in economic activities:

The economic activities are increase nowadays, so banks are contributes more ineconomic activities. Banks are played role in trade and commerce. So the business ofcommercial banks is increase.

3.15.4. Threats

Increase in no. of banks:

Increase in no. of banks is a threat for National Bank of Pakistan. No. of private banks(commercial and private) are operating their business and provide the same facilities. Soincrease in no. of banks is a threat for NBP.


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Modern type of banking:

Modern and computerized banking is required to fulfill the customers need. Somaximum branches of NBP are worked in old traditional ways.

Highly skilled people and management required to meet the newstandard of banking. In NBP some employees are totally irresponsible andlack of complete knowledge of banking system. So these employees arecreating continuous problems in the system of NBP.

The whole structure change to online :

NBP have wide network of branches. Only 130 branches are online, so it is very difficultand time consumed to convert all branches to online system. So there is also risk involves

that if one commuter of one branch suffers in problem, all system and all commuters ofall branches must be turnoff.

4. Performance Analysis

4.1. Financial Performance

In 2002, NBP increased its pre-tax profit to Rs. 6,045 million from Rs. 3,016 million in2001, an increase of over 100%. The improved profitability was achieved due to acombination of higher interest revenue, enhanced fee income and run off of theamortization of the 1997 Golden Handshake Scheme. Prudent addition to loan lossreserves was made which continues to improve the cash coverage for non-performingloans.

All key financial and operating ratios demonstrated improvement. Cost/ income ratio was0.44 (excluding one off provision of Rs. 832 million for benevolent fund and Rs. 513


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million for charge for special separation package) as against 0.52 of the last year. Pre-taxreturn on equity was 45.27% as compared to 25.85% of the current year and is impressiveby any yardstick. Pre-tax return on assets improved to 1.43% as against 0.77% of last

year. Capital adequacy ratio of the bank is 14.5%, which is 38% higher as compared to10.52% of last year.

Deposits of the bank increased by Rs. 12 billion. While there was increase in privatesector loans due to adjustment / repayment of loans by large public sector entities andsubstantially lower commodity operations borrowings, advances decreased by Rs. 30billion.

4.2. Industry analysis

Banking is one of the most sensitive businesses all over the world. Banks playvery important role in the economy of a country and Pakistan is no exemption.Banks are custodian to the assets of the general masses. The banking sector playsa significant role in a contemporary world of money and economy. It influencesand facilitates many different but integrated economic activities like resourcesmobilization, poverty elimination, production and distribution of public finance. Itis purchase of car or building of a home banks are always theyre to serve youbetter. It is play ground or any educational or healthy societal activities the moneyof banks nurtures them. It is an industrial project or agricultural development ofthe country the sponsor-ship of banks is very much involved. Banks play verypositive and important role in the overall economic development of the country.

Pakistan has a well-developed banking system, which consists of a wide variety ofinstitutions ranging from a central bank to commercial banks and to specialized agenciesto cater for special requirements of specific sectors. The country started without anyworthwhile banking network in 1947 but witnessed phenomenal growth in the first twodecades. By 1970, it had acquired a flourishing banking sector.

4.2.1. Comparative Study of Domestic Banking Industry


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Nationalization of banks in the seventies was a major upset to domestic banking industryof the country, which changed the whole complexion of the banking industry. Withirrational decision at the top all the commercial banks were made subservient to the

political leadership and the bureaucracy. Specialized banking institutions were alreadyworking in the public sector. The new accountability paradigm changed the businessethics in the banking industry, and with this change started the disaster. Nationalizationof banking industry was accompanied by violent changes in the external value of rupee.The commercial banks thus lost their assets management equilibrium, initiative andgrowth momentum. They ceased to be a business concern and became big bureaucracies.This was accompanied by indiscreet loaning under political pressure. They suffered fromthree terminal diseases: non-performing loans; higher intermediation cost; and loss ofinitiative and entrepreneurship. The rise to Labor Unions and Officers Associations madelife tough and working conditions ugly to honest, dedicated and industrious workers inthe realms of domestic banking industry.

The era of nineties was the climax of privatization, deregulation and restructuringin the domestic banking industry and financial institutions. The MuslimCommercial Bank was the first bank to privatize. Followed by Allied Banklimited, United Bank Limited and now the Habib Bank Limited have beenprivatized. One thing good for that particular period was the recruitment of freshofficers in the domestic banking industry through well-organized policies ofBanking Council. With the decay of Banking Council there was flood of insincere,nonprofessional, incompetent candidates directly appointed/ recruited in all thedomestic banks of the country.

4.2.2. Public Sector Commercial Banks

National Bank of Pakistan NBP

First Women Bank Limited FWB

The Bank of Khyber KB

The Bank of Punjab BOP

The government of Pakistan permitted small private sector banks to operate, whichindulged in doubtful policies to promote business. The public sector banking, whichconstituted the backbone, thus continued to suffer because of their approach, size andcarried over liabilities. Mehran Bank is the prime example of that kind of lax banking inthe country, which ultimately merged into National bank of Pakistan i.e. last resort ofdomestic banking industry.

4.2.3. Local Private Banks


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Askari Commercial Bank Limited

Bank Al-Falah Limited

Bank Al Habib Limited

Bolan Bank Limited

Faysal Bank Limited

Metropolitan Bank Limited

Platinum Commercial Bank Ltd

Prime Commercial Bank Limited

Saudi Pak Commercial Bank Ltd

PICIC Commercial Bank Limited

Soneri Bank LimitedUnion Bank Limited

Muslim Commercial Bank Limited

Allied Bank of Pakistan

Union Bank Limited

Mashreq Bank

In the meanwhile, western banks started entering into the business. They, with the

support of ruling elite, concentrated on the big business, leaving the routine business tothe local banks. This reduced the profitability of the local banks.

4.2.4. Foreign Banks

ABN Amro Bank

Al Baraka Islamic Bank

American Express

The Bank of Tokyo Mitsubishi

CITI Bank

Credit Agricole Indo Suez

Deutsche Bank

Doha Bank

Emirates Bank

Habib Bank A. G. Zurich

Hong Kong Shangai Banking


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Corporation

IFIC

Mashreq Bank PJSCOman Bank

Rupali Bank

Standard Chartered Bank

4.2.5. Specialized Banks

Zari Tarqiati Bank Ltd.

Industrial Development Bank of Pakistan

Punjab Provincial Cooperative BankLimited

There are 17 listed banks in Pakistan 2004. Four banks are still not listed, which areHabib Bank, United Bank, Allied Bank of Pakistan, Dawood Bank. Standard CharteredBank, Citibank, Deutsche Bank and ABN AMRO Bank are main foreign banks in thecountry. These four banks continue to enjoy a significant share in the market, both interms of deposits and advances. All the foreign banks of the country are busy to invest

heavily in the field technology and e-commerce in order to overcome branch limitation.All the foreign banks have been busy to introduce new products and idea to grab largerproportion of the local markets. Foreign banks are carrying major proportion of localbusiness in credit cards, consumer finances and housing finance.

Many domestic banks have increased their general standards. Ours is the age of plasticmoney. Internet-based services are constantly increasing the number of ATM machines,either by installing their own machines or making arrangements with other networks. Thenumber of Debit Cards has also been increasing at an unprecedented rate.

All the domestic and foreign banks vigorously institutionalized consumer financing in the

country and earned handsome profits. The borrowing to private sector has also increasedwhich ultimately boasted the profitability of all the domestic banks of the country. In thelast 3 to 4 years many domestic banks have been suffering from surplus liquidity crisismainly due to low demand for credit and slowdown of manufacturing sector in thecountry. Almost all the banks are now buy to invest in capital markets to increase theirexposure in equities. To stop that risky trend the State Bank of Pakistan issued theinstructions to follow the Prudential Regulations in letter and spirit and not invest in thecapital markets beyond the limits. The domestic banks lending under consumer financeand housing finance has also been growing. The analysis of Annual Reports of banksshows that their income from core banking activities has been growing. The otherpositive point is that there are growing expectations for increase in interest rates.


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The growth in advances has started matching growth in deposits. The quality of asset aswell liability products have been improving. The ratios of non-performing loans havedecreased. The SBP29 Scheme has benefited the banks as well as the borrowers to pay-

off their long-standing dues. Bank Alfalah is the first to opt for the listing policy of thegovernment and also offered its share to general public. Two of the state-owned banks,Habib Bank and United Bank, have been privatized.

Allied Bank of Pakistan was privatized in early nineties. But due to many internal andexternal reasons it continues to suffer. Some meaningful senior managerial changeswould be better at the earliest. Dawood Bank has recently emerged on the bankingscenario of Pakistan and it is good addition. The bank has come into existence as a resultof acquisition of Pakistan operations of a Sri Lankan bank by a local business group. It isalso not listed at the local stock exchanges. Meezan Bank is the first bank of the country,which is carrying complete Islamic banking.

4.3. Comparative Analysis

Comparative Analysis of Domestic Banking Industry of Pakistan

(Rs. million)

Bank Deposit Advances Investments

ACB 51,732 30,035 26,759

BAH 34,240 23,775 18,831

Bop 23,767 6,621 8,295

BB 7,761 3,298 1,328

FB 24,554 21,935 6,842

UNION BANK 328,182 167,523 142,877

KB 2,640 490 2,118

MB 5,079 3,532 856

Metro 28,515 19,444 15,013

MCB 182,706 78,924 89,610


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NBP 362,866 140,547 143,525

PCB 21,155 10,876 10,306

PB 14,640 9,016 7,534

SPB 12,341 8,522 6,365

SB 20,545 11,378 9,844

UB 37,760 28,890 11,822

UBL 154,915 74,117 69,385

4.4. Marketing Analysis

4.4.1. Market Recognition

For the second consecutive year, NBP was recognized as the best bank in Pakistan by theprestigious periodical, The Banker" UK (a subsidiary of Financial Times Group).Furthermore M/s JCR-VIS Credit Rating Company Limited maintained its rating of AAA,while the standalone rating was raised by one notch to AA-, which is one of the highest in

the banking sector.

4.4.2. Future Outlook

The reduction in the interest rate environment will overall have a negative impact on thefinancial sector's profitability in the short term. To meet these challenges we will focuson building our loan portfolio, both on corporate and retail side. On the retail side focuswill be on additional fee business while maintaining stringent controls over cost. Longerterm we will be focusing on those sectors in the country, which have traditionallyreceived less attention from the financial sector, i.e. agriculture, small and mediumenterprises and of the entire range of retail products. Our key strength remains our

customer base of over 9 million and we are confident that we are positioned to capitalizeon the opportunities.

5. BANK CHARGES EFFECTIVE FROM 01.01.2006

5.1. INTERNATIONAL BANKING

ANNUAL VOLUME

5.1.1. IMPORTS. DURING A CALENDAR


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YEAR Ist Qtr. Each Sub.Qtr Minimum

LETTER OF CREDIT. Or part or part amount

thereof thereof. Per L/C

a. Opening of cash Letters of Credit. a. Upto Rs.20 (M) 0.40% 0.20% Rs.1, 000/-

b. Upto Rs.50 (M) 0.35% 0.20%

c. Upto Rs.100 (M) 0.30% 0.20%

d. Up to Rs.250 (M) 0.25% 0.20%

e. Up to Rs.500 (M) 0.20% 0.15%

f. Up to Rs.1, 000 (M) 0.15% 0.10%

g. Above Rs.1, 000 (M) 0.10% 0.05%

Note.

1. Projected Annual Volume is to be ascertained and got approved by the CompetentAuthority Commitment letter from customer for paying difference in commission arisingout of short fall in business commitment.

2. L/C commission for the increased liability should also be recovered for un-expired L/Cperiod. In case, liability increases (due to exchange rate fluctuation) by virtue ofproviding forward cover to the customer after opening of L/C.

b. Revalidation Commission.

On expiry of L/C when the same is revalidated, revalidation commission should berecovered as is applicable for opening of Fresh Letter of Credit, as in ( i-a ) above. L/Ccommission will be calculated on the amount of liability as per exchange rate prevailingon the date of revalidation

c. Transfer Commission.

When a Letter of Credit is transferred to a new beneficiary, transfer commission shouldbe charged as applicable in case of Fresh Letter of Credit as in ( i-a) above.

d. Approval from SBP for re-import of Consignment back to Pakistan. Rs.2, 000/-(Flat) per case.


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e. L/C Cancellation Charges Rs.1, 000/- (Flat) Plus actual telex charges

.a. Non-reimbursable Letter of Credit under Barter/Aid/Loan and authorization to Pay.1% on 1st quarter and 0.30% for each subsequent quarter or part thereof Minimum ofRs.2, 000/-

b. L/C under Suppliers/Buyers Credit, Pay as you Earn Scheme and Deferred paymentL/Cs for period of one year.

Commission @ 0.40% per quarter or part thereof (at the time of opening of L/C, it is tobe charged on full amount of L/C liability plus interest payable thereon for the periodfrom the date of opening of L/C till the expiry of L/C, thereafter commission is to berecovered on six monthly basis on outstanding/reducing liability as per revised Scheduleof Charges applicable on that date.) In case forward cover is provided against L/C under

Suppliers/Buyers Credit, L/C commission should be recovered at booking rate for whichliability voucher is to be passed. This is due to the fact that exchange fee is beingrecovered in advance.

iii. If bills are to be drawn at a Usance under the above Letter of Credit other thanPAYEES And Suppliers/Buyers Credit and deferred payment Letters of Credit on yearlybasis.

1. Rs.500/- per bill (Flat) to be charged at the time of retirement of bills.

2. Extra Commission @ 0.10% per month is to be recovered/charged for the Usance

Import Bill for any period beyond validity of Letter of Credit.

Amendments.

Rs.750/- per transaction (Flat) or commission under item (I.-a) or (ii-a) Pg-1, ifamendment involves increase in amount or extension period of shipment.

iv. Issuance of Standby Letters of Credit (i.e.) beneficiaries in foreign countries) directlyor through correspondent bank/banks foreign branches/offices.

0.40% per quarter or part thereof Minimum Rs.1, 000/- plus

Correspondent bank charges if any.

Swift/Telex US$ 20/- per telex /swift message

Postage US$ 10/- per postage

Amendments.


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US$ 20/- per transaction (Flat) or if amendment involves (increase in amount orextension in period) comm.. As above

V. a. For providing certified photocopies/ transfer of Category Pass Book. Rs.1, 000/-(Flat)

b. Processing charges for new Import Registration. Rs.1, 500/- (Flat)

c. Renewal of Category Pass Book Rs.1, 000/- (Flat)

vi. Mark-up in case of Import Bill under Import Letter of Credit.

a. 45 Paisas per Rs.1,000/- (or as per Sanction Advice) on daily products from the date ofreimbursement till the date of retirement.

b. Banks commission on bills under Import Letter of Credit.

In addition to mark-up as per VI (a) Banks commission is to be charged as under:-

1. If retired within 10 days

From the date of lodgment. No commission

2. If retired during 15 days 20 Paisas per Rs.100/-

subsequent to the period on purchase price.

At item (1) above.

3. If retired during next 15 25 Paisas per Rs.100/- days after the period on purchase pricementioned (1) & (2) above.

4. If retired during next 35 Paisas per Rs.100/- 190 days after the period on purchaseprice mentioned at (1) (2) and

NOTE.

1. The Branches in their notice to Importers will indicate the sale price (Marked-up) by

adding Rs.11.50 for each Rs.100/- or part thereof and will recover mark-up from the dateof reimbursement to the date of retirement of the bill by the client by applying the Slab ofrates as per clause (VI) above.

2. Benefit of cash margin recovered at the time of opening of L/C will be given to the

customers at the time of retirement of documents.


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3. No mark-up will be charged from the date of reimbursement till the date of lodgmentof documents received under Import L/Cs where the amount as per reimbursementarrangement is made to the negotiating bank only on receipt of the documents.

4. In case ofFIM the following mark-up will apply:-

i. Mark-up 43.836 Paisas per Rs.1,000/-on daily product (or as perSanction Advice) against RegularCredit Line under approvedarrangement.

ii. In case of Forced Creation ofFIMpenal charges to be recovered not

exceeding Paisas 50 per Rs.1, 000/-on daily product basis.

iii. In case FIM is created and Bankarranges Clearance of consignmentunder Sight L/C, 50 Paisas per Rs.1,000/- on daily products shall becharged from the date of creation ofFIM plus 1% handlingcharges/commission.

5. In case Forced FIM is created due to non-payment on maturity against DA/SuppliersCredit L/C. Commission @ 0.35% is to be charged (once only) in addition to mark-up @Paisas 50 per Rs.1,000/- from the date of maturity till the date of payment.

6. Bank reserves the right to change the mark-up rate on case to case basis.

vii. Import Bills returned unpaid. Handling charges US$ 50/- (Flat) from ForwardingBank plus Courier charges if any.

Viii.

a. Collection Rs.750/- (Flat) per collection provided no charges are realized from thecorrespondent.

b. Consignments. 0.20% (Flat) handling charges at the time of registration of contract/purchase order/ Performa invoice Minimum Rs.500/-

c. Import against advance payment to suppliers. Rs.750/- (Flat) plus usual remittancecharges.


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ix. Service charges against Import transactions i.e. Import Bills/PAD/Collection. @Paisas 10 per Rs.100/- or Re.1/- per mille. Minimum Rs.500/-

x. Reimbursement charges (payable to reimbursing Banks.) At actual. Charges forborrowing customers as per arrangement.

5.1.2. EXPORTS

i. Processing Charges for Export Registration. Rs.200/- (Flat)

ii. Letter of Credit.

a. Advising. Rs.350/- (Flat)

b. Amendment Advising. Rs.250/- (Flat)

c. Negotiation of Bills against Letters of Credit issued under Barter/Remittance FromSBP. 0.25% Minimum Rs.200/-

d. Confirmation. 0.25% per quarter Minimum Rs.250/-

e. Transfer of Export L/Cs. Rs.350/- (Flat)

f. Reimbursement payment to other local bank from Non-Resident Rupee Account.Rs.350/- (Flat)

iii. If the documents are sent to other banks for negotiation under restricted Letter ofCredit. Rs.350/-(Flat)

iv. Collection.

a. Clean Cheques/Drafts/FTCs. Rs.100/- per Collection (Flat)

b. Documentary (on which bank do not earn any exchange difference). Rs.200/- perCollection (Flat) v. a. Duty draw back claims. 0.25% of the amount of claim MinimumRs.250/- per claim.

b. Handling of export documents against which advance payment is received. Rs.200/-(Flat) plus postal charges.

vi. Collection FEBCs, DBCs, FCBCs, Special USSDBs and coupon.

Note.

No Charges on E-Form Endorsement & issuance of advance payment slip. 0.20%Minimum Rs.200/- Max. Rs.500/-


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vii. Service Charges against export documents sent on collection basis where paymentcover is already received to our Foreign Currency Account. @ Paisas 10% or Re.1/- permille.

5.1.3. REMITTANCES.

(i) OUTWARD

a. Foreign Traveller Cheques. 1% of the amount of Traveller Cheques sold Min. Rs.200/-

b. i. Remittance abroad through Foreign Currency Account. Commission @ US$ 1.00 perUS$ 1,000/- or part thereof Min. US$ 5.00 Maximum US$ 25.00 plus telex chargesRs.250/- per telex in case of telegraphic transfer.

ii. Remittance against surrender of F.C Notes or cash deposited in F.C Account within 10days from the date of such deposits.

Note:- Service Charges @ 1.0% to be recovered from the customers in case cashdeposited in FC Account is encashed /converted into Pak Rupees within 10 days from thedate of such deposit . In addition to mentioned under b (i ) above service charges @ 1.0%to be recovered in case the remittance amount exceeds US$ 5,000/- or its equivalent inother foreign currencies.

iii. Collection for Foreign Currency Accounts

c. Remittance abroad other than through Foreign Currency.

US$ 5.00 for collection up to US$ 1,000/-

US$ 15.00 for collection above US$ 1,000/-

a. Students (for education purposes). Rs.50/- plus telex charges Rs.200/- per telex if

Telex required or usual postal charges as prescribed.

b. Other than students.

Rs.50/- per US$ 1,000/- Min. Rs.200/- and Max. Rs.500/- plus telex charges Rs.300/- pertelex for telegraphic transfer or usual postal charges as prescribed.

d. Service Charges against issuance of Foreign Mail Transfers (FMTs) Foreign DemandDrafts (FDDs) Foreign Telegraphic Transfer (FTT) & Travellers Cheques (TCs) againstPak Rupee. @ Paisas 10 % or Re.1/- per mille.

e. FDD/FTT/FMT Cancellation Charges for foreign currency account. Rs.200/- per itemplus telex/postage charges


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f. Issuance of Duplicate FDD. Rs.300/- plus usual telex/postage charges

C. (ii) I N W A R D

a. Home Remittance No Charges (Zero Tariff)

b. Others. Nil, if proceeds are credited to an account with the drawee bank. In other casea flat

Charges of Rs.10/-

c. Encashment (Purchase) of Traveler Cheques. Rs.100/-(Flat)

d. Service Charges on payment of Inward Foreign Drafts/Foreign Mail Transfers wherepayment is made to beneficiaries after payment cover is received to our Foreign CurrencyAccount. These charges are to be recovered only when T.T buying rate is applied. @Paisas 15 per Rs.100 /-Minimum Rs.200/-

e. Commission/Handling Charges on Deposits of Currency notes for the credit of ForeignCurrency Accounts. Nil, if no remittance affected within 10 days of the date of deposit,otherwise remittance charges % service charges as per schedule C b (ii)

5.1.4. MISCELLANEOUS.

i. Postage/Cable/Fax/Courier

At actual subject to Minimum, as under:-

a. Postage (Ordinary) Local Rs.25/- Inland Rs.40/

b. Postage (Registered) Local Rs.30/- Inland Rs.50/- Foreign Postage at actual Min.Rs.100/-

c. Telegram Local/Inland Rs.50/-

d. Telex /Fax/Telephone/Swift Local Rs.20/- Inland Rs.25/- per minute Min. Rs.50/-Foreign: - . Full Telex L/C/Guarantee and long Message Rs.1, 200/- for full message for

Short message Rs.400/- . L/C/Guarantee amendment, Telegraphic Transfer andMiscellaneous messages Rs.1, 200/- for full message. Rs.400/- for short message

e. Courier Local Rs.50/- Inland Rs.70/- Foreign Rs.1, 100/-

ii. Foreign Bills sent for collections returned unpaid Rs.350/- (Flat) plus telegram chargesif any.


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iii. Inward Collection received (relating to F.C Account) from abroad or localbanks/branches and where the payment is demanded in Foreign Currency. US$ 3.00 perUS$ 1,000/- or part thereof Minimum US$ 3.00 Maximum US$ 6.00

iv. Inward cheques expressed in foreign currency drawn on foreign currency A/csreceived from local/upcountry banks branches for payment in Pak Rupees afterconversion at authorized dealers buying T.T clean rates. Commission @ Paisas 15 per Rs,100/- Minimum Rs.200/-

v. Issuance of proceeds certificate beyond one year. Rs.500/- (Flat) per certificate.

vi. Issuance of Business Performance certificate at customers request. Rs.500/- (Flat) percertificate.

vii. Standing Instruction Charges in Foreign Currency Accounts. US$ 5.00 per instruction

5.2. DOMESTIC BANKING

5.2.1. REMITTANCES.

Issuance of Drafts, MTs, & TTs:

a. Up to Rs.100,000/- 0.10% Minimum Rs.50/-

b. Up to Rs.1, 000,000/- 0.05% Minimum Rs.100/-

c. Over Rs.1, 000,000/- 0.04% Minimum Rs.400/-

d. Issuance of Duplicate Draft.

1. For account holders Rs.200/-

2. For non account holders Rs.250/-

a. Telegram Charges on TTs. (whether through Telex/Fax) Actual, Minimum Rs.75/-

b. Trunk Call charges on issuance of T.Ts Rs.100/- (Flat)

c. Postage on MTs.

d. Courier Charges. Actual Minimum Rs.30/- if sent by Registered post locally, Rs.50/- ifsent by Registered post Inland on partys request. Local Rs.50/- Inland Rs.75/-

5.2.2. PAY ORDER.

a. Issuance of pay order:-


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1. For account holder Rs.50/- (Flat)

2. For non-account holder Rs.100/-(Flat) Rs.25/- (Flat) from student for payment of feefavoring educational institution

b. Issuance of duplicate Pay order

1. For account holder Rs.100/- (Flat)

2. For non-account holder. Rs.150/-(Flat)

5.2.3. Issuance Of Call Deposit Receipt

1. For account holder Rs.50/-

2. For non-account holder Rs.100/-

b. Cancellation/Issuance of Duplicate Call Deposit Receipt.

1. For account holder Rs.100/-

2. For non-account holder Rs.150/-

Iv. Inland Travellers Cheque. (Other than NBP if any) 0.25% Minimum Rs.25/-

iv. Inland Letters of Credit. (Openingcommission)

Annual Business

Up to Rs.50 (M) 0.40% per quarter or Up to Rs.75(M) 0.35% part thereof Up toRs.100(M) 0.25% Above 100(M) Negotiable Minimum Rs.1,000/=

a. Amendment Charges.

A) Without increase in amount or extension in period of shipment Rs.500/- (Flat)

B) Involving increase in amount and/or extension in period of shipment Rs.500/- pertransaction/commission as per item (iv) above

b. Advising/Amendment/Confirmation Charges of (Inward) Inland L/Cs. above Rs.500(M)

Note: Charges negotiable on case to case basis under approval of Business Group

Head. Same as applicable in case of Export L/Cs Rs.500/- (Flat)


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.

vi. Authorities to encash cheques. No commission by issuing branch but charges onpurchase of cheques will be recovered commission @ 0.80% Minimum Rs.25/- plusCourier Charges Rs.30/-

vii. PO/DD/TT Cancellation

1. For Account holder Rs.50/-

2. For non-Account holder Rs.100/-

DD Issuance Charges Rs.200/-(Flat)

5.2.4. BILLS.

i. Collection:-

a. Documentary Bills. 0.40% Minimum Rs.50/- plus postage/courier charges.

b.i. Clean (including cheques/dividend warrants/bank drafts etc)

ii. For NBP own cheques/DD/PO 0.20% Minimum Rs.50/- plus postage/courier chargesas mentioned above.

NOTE:

No commission should be charged on out station cheques, drawn on places where there isan office of the bank, which are received from Government Departments for credit toGovernment Account. This waiver does not applied to outstation cheques tendered by thePUBLIC in payment of Government dues upon which the Banks usual charges should belevied. As per Zakat & Ushr Ordinance 1980, (Amended in 1997) banking services andservices connected with the assessment collection or disbursement of Zakat & Ushrrealizable on compulsory basis under this ordinance are to be rendered free of charge.Hence no collection charges shall be recovered on cheques drawn on Central Zakat Fundfor crediting to account of their beneficiary. 0.15% Minimum Rs.50/- plus applicable

postage/courier.

iii. Purchase of bills, cheques etc.`

a. Documentary Bills other than those drawn against Letters of Credit

b. Clean Bills (trade cheques, bank draft etc.) a. 0.25% Minimum Rs.50/- plus applicable

postage/courier charges. b. 0.40% Minimum Rs.25/- plus applicable postage/couriercharges.


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NOTE:

i. Postage/Courier Charges are to be recovered on collection/realization of eachinstrument(whether clean or documentary). However, in case where party has depositedmore than one cheque/instrument on a particular date to be collected/drawn on the samebranch of the bank, postage/courier charges are to be recovered (once only.)

ii. Collection of cheque of small amount may be effected through normal dak (other than

Courier) if specially requested by the party in writing for which he will be responsible forthe delay.

b. Other cheques/demand instruments (Like dividend warrants). 0.60% Minimum Rs.20/-

NOTE:

i. Collecting agents charges if the Collecting banks is other than the Bank will be extra.

ii. Telegram/Trunk Call Charges will be Extra, if fate of the instruments is asked for bytelegram.

c. Returning Charges for Documentary & Clean Collections, in case the instruments arereturned unpaid. Rs.100/- + Courier Charges as above (Documentary) Rs.100/- + CourierCharges as above (Clean).

d. Mark-up shall be applied as under on bills purchased/negotiated. If retired up to 21stdays from the date of Purchase but during next 210 days (cushion period) 40 Paisas perRs.1, 000/- per day

e. Storage Charges. i. No Charges, if cleared within 3 days of its receipt by the branch.

ii. Re.1/-per packet per day Min. Rs.50/-

iii. Documentary bills drawn against Inland

5.2.5. Letters of Credit.

Charges for borrowing customers as per arrangements.

1. SIGHT BILLS.

a. Negotiating end Negotiating Commission @ 0.50% Minimum Rs.500/-

b. Collection Charges (Inland L/Cs) Rs.500/- (Flat)


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c. Collection Charges for restricted L/C (where Negotiation is restricted to some otherBanks and presented to us for forwarding). Rs.500/- (Flat)

d. At opening end (at the time of retirement) rate of Mark-up.

i. If retired within 3 days from the date of lodgment Mark-up @ 45 Paisas per Rs.1, 000/-on daily product from the date of negotiation.

ii. If retired after 3 days of lodgment Mark-up @ 45 Paisas per Rs.1, 000/- on dailyproduct plus Banks Commission @ 0.25%

NOTE.

No mark-up will be charged from the date of negotiation till the date of lodgment ofdocuments received under Inland L/Cs where the payment as per reimbursementarrangement is made to the negotiating bank only on receipt of documents.

iii. If negotiation is restricted to some other bank.

Inland L/C cancellation charges Rs.500/- (Flat)

Forwarding Bank/Branch would charge handling charges of Rs.200/- (Flat) per bill(commission will not be applicable).

2 USANCE BILLS

At opening end.

a. Handling Charges. Rs.0.40% per bill Minimum Rs.500/- at the time of retirement ofbill.

b. If bills matures after expiry of L/C. Usual Charges as in (a) above plus delivery ofdocuments against acceptance commission @ 0.10% per month on bill amount onrealization from the date of expiry of L/C but Minimum Rs.500/-

c. Discounting of Inland Usance Bills. Markup @ 25 paisa per Rs.1000/- on daily product

(or as per Sanction Advice) plus flat Commission @ 0.1%.

3. At collecting end.

a. Collection Charges Commission @ 0.30% Minimum Rs.200/-

b. In case of purchase. Usual Commission as in (a) above and keep mark down @ 0.75%for every 15 days from the date of purchase till the date of maturity.

NOTE


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All other charges as per quote (i) & (ii) and (c) above wherever applicable will be extra.

5.2.6. PROJECT FINANCES/ADVANCES

Following Charges may be recovered in-addition to interest/mark-up return oninvestment.

1. Project Application Fee

(Non-refundable)

Following charges will be recovered in addition to mark-up/Return on Investment.

Miscellaneous (i.e. is charges for documentation, evaluation of security and maintenancethereof etc.)

At actual, in addition:

1. Project examination fee @ 0.50% (flat) after acceptance of sanctioned by thecompany but before disbursement of the total amount of sanctioned (Funded and NonFunded Both) Minimum Rs.15, 000/-

2. Legal documentation fee. @ 0.25% Flat after acceptance of sanctioned by theCompany but before disbursement of the total amount of sanctioned (Funded and Non

Funded Both)

3. Project monitoring fee @ 0.25% p.a. payable quarterly on outstanding amount(Funded and Non Funded Both)

4. Commitment fee @ 1.50% p.a. payable quarterly on the un-disbursement amount ofsanction (Funded only)

5. Front End/Arrangement Fee. @ 1.50% (Flat) wherever applicable as per Banksdiscretion. Concessional rates are admissible on case to case basis with the approval ofHead Office

Miscellaneous Charges for issuance of NOC.

For issuance of NOC at the request of customers/clients for creating additional/pari-passucharges/second charges on their fixed assets for acquiring further project finance fromother Banks/Financial Institutions. Rs.10, 000/- (Flat)

NOTE:

Recovery of these charges waived from:


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g. Marking of lien on Securities issued by NBP for other banks Rs.500/- (Flat) percustomer

NOTE:

While recovering the miscellaneous Charges like godown rent, godown staff salary, andinspection charges the amount recovered from the borrowers shall not exceed the totalrent of godown, salary of the godown staff etc. In other word miscellaneous chargesshould be levied as per actual and not become a source of profit to the bank. However,reimbursement of actual conveyance charges to be made to concerned staff to the debit ofExpenses Account after proper approval of the competent authority.

5.2.8.STANDING INSTRUCTIONS FEE.

Standing Instructions fee will be recovered in addition to the usual charges onremittances, if any. Rs.100/- per transaction.

SALE AND PURCHASE OF SECURITIES SAFE CUSTODY ARTICLES IN

SAFE

DEPOSITS & SAFE DEPOSIT LOCKERS.

A. I. Sale and purchase of shares and Securities

a. Rs.0.50% up to Rs.10, 000/- of purchase price or cost thereof Minimum Rs.50/-

b. Rs.0.10% on amount exceeding Rs.10, 000/- Minimum Rs.75/-

ii. Shares & Securities held in safe custody as a result of order of purchase executedthrough the bank (to be recovered up front) Rs.0.50% (Flat) per annum or part thereof ofthe face value with the minimum of Rs.300/-

NOTE

a. The above charges is in addition to brokerage.

b. Commission is not to be recovered on purchase of newly floated securities, where it ispayable by the Govt. / Govt. Agencies and from the subscribers to new Shares floatation.A rebate of 50% in Safe Custody Charges will be applicable to all clients maintainingMinimum balance of Rs.1 billion or above throughout the year in NIDA Account.

c. When orders for purchase or sale of shares/ securities are executed through the banks,other offices, all incidental expenses such as postage, insurance charges etc., incurred willbe recovered in addition to the commission / brokerage charges.


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iii. Withdrawal fee on shares and securities held in safe custody (to be recovered at thetime of withdrawal.)

a. 0.25% up to Rs.10, 000/- of the paid up or face value Minimum Rs.50/-

b. 0.125% on amount exceeding Rs.10, 000/-

iv. Withdrawal fee on Government Securities. Rs.10/- per scrip. Where share and/orsecurities sold are from those held in safe custody, either commission on sale of sharesand securities as shown against item (I) or withdrawal fees as shown against item (iii)whichever is higher, will be charged but not both.

v. Charges for collection of interest/ return / dividend. 0.30% on the amount ofinterest/return/ dividend collected/ Paid Minimum Rs.20/-

vi. Handling Charges for conversion, renewal, consolidation or Sub division ofGovernment Securities. Rs.10/- per Scrip.

vii. Public Flotation of Shares/Modaraba Certificates/ Offer for Sale of Shares/Disinvestment/Term Finance Certificates. Commission @ 0.50% plus Out of PocketExpenses - actual

NOTE: Commission negotiable on case to case bases.

viii. Payment of Dividend Warrants through designated branches. Commission @ 0.50%

plus Out of Pocket Expenses actual

NOTE: Commission negotiable on case to case basis

Safe custody Articles in Safe-Deposit lockers.

Safe Deposit fee (to be recovered in advance at the time of deposit or at thecommencement of each Quarter)

A. For Boxes and Packages. Rs.4/- per 100 cubic inches or any part thereof with aminimum of Rs.300/- per quarter.

B. For Envelopes. (Contents unknown) Rs.2/- per 25 square inches or any part thereofwith a minimum of Rs.300/-

ix. Safe Deposit Lockers Fee for Safe Deposit lockers (to be recovered in advance or atthe commencement of the period yearly, half yearly, quarterly as the case may be.)

a. Up to 0.40 cft Small Rs.1, 000/- per annum

From 0.41 to 0.80 cft


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From 0.81 to 1.35 cft Medium Rs.1, 500/- per annum


From 1.76 to 2.00 cft Large Rs.2, 500/- per annum


From 2.51 to 3.00 cft Extra- Large Rs.4, 000/- per annum

Key Deposit.

Deposit will apply at the Small Rs.3, 000/-

Time of issuance of new

Lockers. Medium Rs.4, 000/-

Large/Ex-Large Rs.4, 000/-

Breaking Charges.

Rs.2, 000/- per locker/Actual (whichever is higher)

x. SERVICE CHARGES FOR INVESTMENT IN PAKISTAN INVESTMENT

BONDS (PIB)

Maximum Custodial charges. Rs.100, 000/- per annum per PIB issue orRs.8, 333/- permonth.

Face Value Balance of up to PKR 1 Million No Charges.

Face value Balance of PKR 1 Million to PKR 200 Million Maximum 0.05% p.a. with aMinimum Charge of PKR 1,000/- per month

Face Value Balance in excess of PKR 200 Million PKR 8,333/- per month

Note:

Custodial Service Charges are to be calculated on month-end balances & charged tocustomers monthly, with no charge on initial sale/origination of transaction. Subsequentsale/transfer to an IPS account of another PD is subject to a charge of Rs.1, 000/- pertransfer/transaction. The aforesaid charges are linked to each individual issue and shouldnot be levied on aggregate basis.

5.2.9. GUARANTEES.


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i. Charges for borrowing customers. As per arrangement.

ii. Guarantees issued to shipping companies in lieu of Bill of Lading or endorsement ofcopy of Airways Bills in absence of original Airways Bill. Rs.1, 000/- (Flat)

iii. Guarantees issued to Collector of Custom in lieu of payment of Export Duty whichare valid up to 6 months. 0.50% per quarter or part thereof Minimum Rs.1, 000/- (2.00%per annum).

iv. Issuance of foreign guarantees (i.e. beneficiaries in foreign countries) directly orthrough correspondent bank/banks foreign branch/offices 0.40% per quarter or partthereof Minimum Rs.1, 000/- plus correspondent bank charges if any. Swift/Telex US$20/-per Tlx/Swift message Postage US$ 10/- per postage Amendments in (iv) above. US$20/- per transaction (flat) if amendment Involves (increase in amount extension in period)

commission as above.

v. L/G under Suppliers/Buyers Credit Pay as you Earn Scheme

Commission @ 0.40% per quarter or part thereof (at the time of issuance of L/G it is to

be charged on full amount of L/G liability plus interest payable thereon for the periodfrom the date of issuance of LG/ till the expiry of L/G thereafter commission is to berecovered on six monthly basis on outstanding/reducing liability as per revised Scheduleof charges applicable on that date.) In case forward cover is provided against L/G underSuppliers/Buyers Credit, L/G commission should be recovered at booking rate for which

liability voucher is to be passed. This is due to the fact that exchange fee is beingrecovered in advance.

vi. In case of L/G under taking to be issued favoring any bank for providing forwardcover exchange risk under Suppliers/Buyers Credit on behalf of applicant.

vii. Other Guarantees

viii. Guarantees issued against collateralization of foreign currency deposit. L/Gcommission to be charged @ 1.6% per annum to reducing liability on booked rateMinimum Rs.1,000/- 0.40% per quarter or part thereof Minimum Rs.1,000/- (1.6% per

annum) up to one year)

a. Deposit More than US$ 500,000/- 0.25% per quarter or part thereof Minimum Rs.1,500/- (1% per annum)

b. Deposit more than US$ 500,000/- up to 5,000,000/- 0.125% per quarter or part thereofMinimum Rs.1500/- (0.5% per annum).

c. Deposit more than US$ 5,000,000/- Nil


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d. Amendments Rs.300/- per amendment (Flat) or 0.40% per quarter or part thereof ifamendment involves increase in amount of extension in validity Minimum Rs.500/-

NOTE.

1. All Guarantees issued by bank must contain specific amount and expiry date andcommission to be charged from the date of issue till expiry of the L/G up front.

2. If period of Bank Guarantee exceeds one year than commission be recovered on yearto year basis.

3. For calculation purpose a quarter would consist of 3 months starting from the date ofissue of Guarantee (Three calendar months will make one quarter.)

5.2.10. MISCELLANEOUS CHARGES

1. Service Charges on PLS Saving Accounts including dormant, inoperative andunclaimed with monthly average balance below Rs.5,000/-.

Exemptions:-

The following categories of account holders are exempted from levy of the ServiceCharges:

i) Students

ii) Mushtahiqueen of Zakat

iii) Employees of Government/ Semi- Government institutions drawing salary / pension.

iv) Person availing any consumer product related finance facility from the bank wouldalso be exempt from levy of service charges.

v) Ex-NBP employees or their spouses drawing pension/medical from the bank. Rs.50/-per month w.e.f. 01-02-2004

2. Service Charges on Current Accounts including dormant, inoperative and unclaimedwith monthly average balance below Rs.5, 000/-. Rs.50/- per month w.e.f.01-01-2004

3. Duplicate statements of account older than one year Rs.50/- per statement of account

4. Issuance of SBP/NBP Cheques. Rs.300/- per cheque

5. Handling charges for issuance of students exchange remittance permit andmaintenance of record for subsequent remittance. Rs.200/- per annum


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6. Stop payment of cheque. Rupee A/c Rs.150/- per instruction. F.C A/c US$ 5/- perInstruction

5.2.11. EXTRA.

Stop payment charges are to be levied one time for stop payment instructions whether itis for one or more cheques.

7. Clearance of Cheques where Clearing House Facility not established. No Charges.

8. Collection/encashment of profit coupons on Govt/Saving Centers under lien to us.Rs.200/- per trip.

9. Verification of test for other banks/parties Rs.250/- (Flat)

10. Credit information report including credit report on foreign suppliers/buyers. Foreigncorrespondent/reporting agencies charges at actual + Tlx. Charges.

11. Registration of contract with SBP in respect of private foreign currency loan obtainedby borrowers in Pakistan from foreign lenders. Handling charges Rs.5, 000/- (Flat.)

12. Confirmation of balances to auditors. Rs.400/-

13. Balance Confirmation Certificate (required by customers other than auditors).Rs.100/- per certificate.

14. Charges for Cheques returned unpaid (when fault lies with the customer) to berecovered from the client on whose behalf the instrument is being collected andcollecting bank will apply these charges. In case bearer cheque returned on the counter nosuch charges will be applicable. Rupee Account 200/- per cheque. F.C Account US$ 5/-per cheque.

15. Issuance of new cheque book in lieu of lost cheque book (Rupee A/c only). TheseCharges are in addition to stop payment charges as prescribed in (4) above. Rs.75/- percheque book in rupee Account. US$ 2/- in F.C Account.

16. Issuance of loose cheque. Rs.50/- per cheque Rupee A/c US$ 1/- F.C A/c

17. Account closing charges. Rs.250/- for Local Currency or entire amount if balance inthe account is below Rs.250/- . US$ 5/- for Foreign Currency or entire amount is belowUS$ 5/-

No charges on closing of old frozen FC A/cs

18. Issuance of Cheque Book Rs.2.50/- per leaf Mailing Charges for Cheque Book.Actual.


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NOTE.

No Charges will be recovered from customers maintaining deposit balances of US$25,000/- and Above or equivalent of Rs.1/- (M) and Bank Staff are also exempt from levyof this charge.

19. Charges from employer on Salary Disbursement Services. Rs.25/- per salary accountper month.

NOTE:

A number of Commercial Organizations (other than Govt.and Semi-Govt. andAutonomous Bodies)disburse salary to their employees through ourbranches. Wheresuch organizations do not maintainsufficient funds or route sufficient business through

our bank to justify workload of salary disbursement,bank is justified to claim chargesfrom them for theadditional workload.

We can not charge individual accounts under Prudential Regulations. We can however,charge the employers where they do not maintain sufficient funds or route ancillarybusiness through our bank. We must charge them for disbursement of salary to theiremployees. ATM Facility. ATM card will be issued free of cost. However, annualrenewal fee of Rs.300/- will be charged. Transaction cost for NBP customer usinganother bank ATM under 1-LINK ATM SWITCH Service. Rs.15/- per transaction Tarifffor Corporate Customers & MNCs With aggregate exposure of over Rs.500/- Million(Both refunded and non funded) and in case of all MNCs L/C Opening guarantee

issuance and remittance (Funds transfer) charges. As per negotiation with the customer.

5.2.12. WAIVER OF CHARGES FOR CUSTOMERS MAINTAINING MONTHLY

AVERAGE BALANCE OF RS.2.000 (M) AND ABOVE IN CURRENT ACCOUNT

OR RS.5.000 (M) AND ABOVE IN PLS SAVINGS ACCOUNT/NIDA ACCOUNT

a. Commission on DD/TT/MT & pay orders.

b. Cancellation/Issuance/Duplicate Pay orders.

c. Cheques returned unpaid.

d. Stop payment of cheques.

e. Issuance of new cheque book in lieu of lost cheque book.

f. Issuance of Duplicate statement of account older than one year.

g. Issuance of loose cheques.


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h. Commission on Overseas Bills/Inland Bills for collection business. (Subject torecovery of postage, courier, fax, telex, trunk call charges wherever applicable).

5.2.13. BANK CHARGES FOR GOVERNMENT BUSINESS.

A. IMPORT:

a. Cash Letters of Credit Less than Rs.250, 000/- 1/8% (0.125%) of the value of the letterof

Credit. Rs.250, 000/- and above. 1/16% (0.0625%) of the value of the letter of credit.

b. Non-reimbursable letter of credit under Barter /Aid Loans/Authorization to pay. 3/8%(0.375%) irrespective of the value of the letter of credit.

NOTE

In addition to above, branches will recover the actual cable/telex/swift charges whereLCs are desired to be established through cable/telex/swift and confirmation charges offoreign banks if foreign banks confirmation is also to be added on openers request. Theabove concessionary rates/charges will apply only to those Letters of Credit which coverimports by the Government routed through State Bank of Pakistan. In case LC is receiveddirectly from the importing agency, normal charges are to be recovered.


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6.Tech Society Branch Lahore

6.1. INTRODUCTION:

It is an old branch of national bank of Pakistan. It is followed the instructions and undercontrol in regional head quarter (east region). It is called as a big branch which hasrequired 10 million rupees daily in terms of reserves to meet daily requirement oftransactions. It has following accounts with regional office,

1. general account

2. Suspense Account

3. Commission Account

In public they deal in two accounts i-e.

1. Current Account

2. PLS Account

They provide lot of services like.

1. Deposits

2. Advances

3. Pension

4. Foreign Exchange

5. Compliances

6. Bills

7. ATM


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8. Utility, bill, traffic challan, admission of AIOU.

9. Lockers Services

10. Western Union (By name only)

In this branch at time 20 executives are providing service. 2 assistant voce presidents areserving at this branch. M. Zulfiqar (manager) and Ifzad Butt (Advances officer). In thisyear two performance awards get by the branch.

6.2. LEARNING AS A STUDENT INTERN:

There are following learning points for me in the bank.

6.2.1. Duties

In my first week in NBP, they assign me worked in pension department. Pension managerMr. Muhammad Iqbal trained me very nicely and I learned lot of things in thisdepartment. They give the pension to retired Govt. employees. There are three type ofpensions given,

1= Provincial

2= Central

3= Defence

These are different according to their PPO numbers

For example:

Provincial PPO 123456

Central PPO 12345/pak

Defence PPO da/dg1/gh/4 etc.

I am full trained now in this particular job and I serve 1000 people in this week. How tofill farm? How to enter in ledgers and balance account and what is file and book and allother things relating to pension department.

In second week I perform following tasks relating to the banking system.


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In second week I worked on opening of account. In this week I repeatedly performed thisactivity.

In third week they assign me with operation manager Mr. Numan sagheer He handled theactivities relating to the branch; check all the work in the branch. He gave me officialcomputer. In this week I type and print so many letters for example;

Statement of account

Letter of tax verification

Letter of issuance of clearing certificate

4 letters for cheques clearing

Letters of relieved of transfer employees from this branch to anotherbranch

Joining letters of new employee come from other branch throughtransfer

Exceptions reports of Mr. Saeed and so many other things.

I also print and type the data of advances department and foreign exchange departments.

Cheques clearing daily sheet is also made by me in this week and I am assisted by theother officers. I also learn about the reserve of the branch and daily finances need by thebank and also get some raw information about the opening new accounts.

In fourth week I assign the same task and learn some more complex and major operationof Sir Numan Sagheer I learn about accounts in which the branch deal with the main andother branches, these are as follows;

1. General Account

2. Suspense Account

3. Commission Account

4. Exchange Account

In general account the branch debt or credit the other branches of the NBP. Usually theydebit or credit the main branch which transfers the cheques on this. In suspense accountbranch expenses are made and at the end of six months period inform and show thebalance to main branch. In commission account bank charges commission against itsservices. In exchange account they also earn, so from last two accounts branch receivesearnings from main branch against its services.


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Secondly in this week I also learn hoe to open an account in the branch, it is a procedureand after it bank open an account.

On computer I type and print so many letters like,

Reconciliation letter

Relieved letter

Joining letter

Medial recovery letter

And at the end I also scroll the challan of Government and pass vouchers.

In first three days of fifth week there are busiest days of pension department so I help theagain pension manager. So first three days serve in this particular task.

In this week I do same job again and print letters, reports, statements and daily clearingstatement of cheques. Also work with Mr. Shafique and from him I learn about openingan account, payment order and demand draft. Payment order is made to send paymentwith in city and draft is made for payment outside the city but inside the country.

S C is that when cheques are coming from outside city for cash and those cheques whichcome from branches inside city are sent to clearing house, so I made the statement toclearing house for clearing cheques.

In fifth week I performed following activities:

Monday

On this day I perform the duty on the seat of bills where following work is being done,

Opening an account

Issue new cheques books

Make a payment order

Making the draft

Cheques send for clearing

Along with this task I also enter the daily post letters in the letter register. This is verybusy task is bank. I help the officer in this seat.


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Tuesday

On this day I join the duty with passing cheques of PLS A/C. There are fifty three booksof signatures cards of A/C holders. So I find the A/C in these books and then gave to theexecutive officer to verify. In this whole day I perform this particular task.

Wednesday

The day is also as above routine to sit in front of computer, scroll following files,

Income tax

Sales tax

Withholding tax

Provincial

Central

Property traffic

So I also make up these files separately, scroll them sequence and filed these files. Alongwith this task type and print the letters, reports and work sheets.

Thursday

Mr. Iqbal assigns me the task to rearrange lockers list and set them in a sequence andprint them on pages. Particular are these,

Name

Address

Amount of rent

Security

Expiry date

Locker no

Key no

Folio no


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All the day is served in doing this particular task.

Friday

On Friday the accounts of holders of expired lockers are checked. Some have balance intheir account but most of them have non in this branch. Rent from those holders howbalances have has been deducted from their accounts through vouchers and to remainingholders reminding letters have been sent. This is the end of Friday.

6.2.2. Problems faced by branch:

During my internship at this particular branch of national bank of Pakistan, there arefollowing problems I have found which are directly affect on efficiency and performanceof the bank. There problems are also called as an internal problems. So these arediscussing below.

1. Lack of communication among the employees:

During the period of my internship I found this problem as a biggest problem that, theyare not very effective in communication between themselves. They do not share theexperience with each other and do not care the other employee. If one employee has aproblem, then he asked to other, but he does not give clear solution to that problems.They are shows the facial expressions against each other. Pension manager and otheremployees are always tried to gain cash/performance award and use the references to get


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it. They are talk against each other in front of me. So finally it is very needy for a publicservices organization to keep atmosphere friendly among the ma

Internship Report on NBP 1

Documents